In spite of the doldrums in the local stock market, international financial organizations have been rushing to buy seafood shares in large volume.
Deutsche Asset Management (Asia) Limited have bought 853,600 shares, or 13.55 per cent stake in Ben Tre Aquaproduct Import and Export Joint Stock Company (ABT). Vietnam Lotus Fund Limited, Vietnam Emerging Equity Fund Limited, Deutsche Bank also holds large volume of ABT shares.
Vietnam Emerging Equity Fund Limited has acquired 150,000 shares in An Giang Fisheries Import Export Co. (AGF), while Singapore’s Temasek Group is holding 10 per cent stake in Minh Phu Seafood Corporation (MCP), Vietnam’s top shrimp exporter, and over 2.2 million Navifico shares.
So far, foreign investments in many seafood firms including ABT and ABT are permitted 49 per cent stake and 31.87 per cent in Fimex Vietnam and 41 per cent in TS4.
Vietnam seafood export has seen an annual stable growth of 18.4 per cent over the past years. Seafood export earnings in the Jan-Jul period reached US$2 billion, finishing 55.22 per cent of full-year target, up 15.71 per cent on year, said Ministry of Aquaculture.
With big orders from foreign customers in two last quarters of the year and the world’s increasing demands for frozen seafood, export of this sector is expected to be up to 30 per cent from that in early this year.
Seafood firms also reported high profit growth. ABT netted profit of VND24 billion (US$1.5 million), up 40 per cent on year, and revenue of VND259 billion in first eight months of 2007. AGF obtained VND30 billion in profit, up 50 per cent on year, and VND565 billion, including VND410 billion from exports in first half this year.
Shares in this sector have P/E ratio of 13-15, lower than that of other business at different sectors, said securities expert Le Thi Thu Uyen in Hanoi.
With big development potential, stable profit growth and cheap price, seafood shares are becoming more and more attractive to foreign investors. (Laborer, Vneconomy)